2016 Contract Update #6

USPS Delivers Financial Presentation

2016 No. 6 – May 12, 2016

This past week the Postal Service presented the NPMHU bargaining team with its official, on-the-record Financial Presentation. This did not include a proposed wage or benefit package for the 2016 National Agreement, but rather focused on the Postal Service’s current financial situation.

The presentation was slightly dated, primarily relying on data from Fiscal Year 2015 (ending on September 30, 2015) and the first quarter of FY2016 to reach its conclusions. It also focused on the termination of the exigent rate increase that led to a reduction in postage rates last month. However, it appears that the projections made in the presentation were fairly accurate. Outlined were the Postal Service’s views on the root causes of its financial instability, the steps it has taken thus far to deal with this financial situation, and the additional actions that it believes are still necessary to cope with the formidable financial challenges that lie ahead.